Question: Hello, could you please provide A CLEAR step by step explanation to approach problems like the below? A corporate bond with a face value of

Hello, could you please provide A CLEAR step by step explanation to approach problems like the below?

A corporate bond with a face value of 100 US dollars currently trades at97 USD

. It has two

remaining coupon payments of 2.5USD in two months and 2.5USD in five months. The annualised USD LIBOR rates for one and four months are 4.5% and 4.75%, respectively.If the six-month USD LIBOR is 4.8% per annum, what is the six-month forward price of the bond?

93.28US dollars

94.28US dollars

95.28US dollars

96.28US dollar

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